IRA into trust for Spouse

Submitted by Kendra Johnson on Wed, 2022-07-20 21:34

Working with an individual who’s husband just passed away and their attorney had set up a trust (believe it is a B trust) in which his IRA went into. Wondering what the proper way to calculate the RMD on this would be.



Submitted by Alan - IRA critic on Thu, 2022-07-21 01:07

  • It depends. If the trust is qualified for look through and spouse is the only beneficiary who can receive distributions as long as she is alive, distributions to the trust can use the single life table with recalculation. Recalc means that the single life table is revisited each year for a new divisor rather than the original divisor being reduced by 1.0 each year. 
  • Depending on the terms of the trust and the discretion accorded to the trustee, if the trust offers no benefits, there are several PLRs that allow the trust to be terminated and the IRA assigned to the spouse, after which the spouse could do a spousal rollover to her own IRA. That would sharply reduce RMDs through use of the Uniform Table. 


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